Tariff Advisory Committee Sheet No: 1 Mumbai 31-03-2001 Section I General Rules and Regulation These rules and regulations are applicable to all sections of this Tariff. 1. POLICY a) b) c) d) e) f) g) Only Standard Fire and Special Perils Policy (hereinafter referred to as Policy) with the permitted "Add- on" covers (as appearing under Section VIII) if any, can be issued. Note:- Unless otherwise specifically provided for, this tariff is applicable to land-based properties only. The wordings of the policy shall be as shown in Section II of the Tariff. Policy(ies) should be read together with proposal form(s), schedule, specification, endorsements, warranties and clauses as one contract. Policy(ies) covering Buildings and/or contents shall show blockwise separate amounts on (i) Building (ii) Machinery and accessories (iii) Stock and Stock-in-Process and (iv) Furniture and other contents. It is permissible to exclude Storm, Tempest, Flood and Inundation group of perils (hereinafter referred to as STFI) and/or Riot, Strike, Malicious and Terrorism Damage perils (hereinafter referred to as RSMTD) at inception of the Policy only by deleting the relevant perils from the Policy. The deletion shall apply for the entire property in one complex/compound/location covering the entire interest of the Insured under one or more policy(ies) without any option for selection. Reduction in premium rates for such deletion(s) may be allowed as shown under the relevant sections of the Tariff. When these perils are deleted from the scope of the policy, the general exclusions shall include these perils. Any risk, which has not been provided for in the Tariff, shall be referred to the Committee for rating. Provisional rate of Rs. 2.50 per mille shall be charged in such cases for covering the risks under Standard Fire and Special Perils Policy. No discounts and/or agency commission shall be allowed on this rate.For add-on covers, additional rates provided in section VIII shall be charged Rates shown under this tariff are minimum rates. Insurers may charge rates higher than those given under the tariff. 2. VALUED POLICY(IES) Valued Policy(ies) can be issued only for properties whose Market Value cannot be ascertained e.g Curios, Works of Art, Manuscripts, Obsolete machinery and the like subject to the valuation certificate being submitted and found acceptable by the insurers.
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Tariff Advisory Committee Sheet No: 1
Mumbai 31-03-2001
Section I
General Rules and Regulation These rules and regulations are applicable to all sections of this Tariff.
1. POLICY
a)
b)
c)
d)
e)
f)
g)
Only Standard Fire and Special Perils Policy (hereinafter referred to as Policy) with the permitted
"Add- on" covers (as appearing under Section VIII) if any, can be issued.
Note:- Unless otherwise specifically provided for, this tariff is applicable to land-based
properties only.
The wordings of the policy shall be as shown in Section II of the Tariff.
Policy(ies) should be read together with proposal form(s), schedule, specification, endorsements,
warranties and clauses as one contract.
Policy(ies) covering Buildings and/or contents shall show blockwise separate amounts on (i) Building
(ii) Machinery and accessories (iii) Stock and Stock-in-Process and (iv) Furniture and other contents.
It is permissible to exclude Storm, Tempest, Flood and Inundation group of perils (hereinafter
referred to as STFI) and/or Riot, Strike, Malicious and Terrorism Damage perils (hereinafter referred
to as RSMTD) at inception of the Policy only by deleting the relevant perils from the Policy. The
deletion shall apply for the entire property in one complex/compound/location covering the entire
interest of the Insured under one or more policy(ies) without any option for selection. Reduction in
premium rates for such deletion(s) may be allowed as shown under the relevant sections of the Tariff.
When these perils are deleted from the scope of the policy, the general exclusions shall include these
perils.
Any risk, which has not been provided for in the Tariff, shall be referred to the Committee for rating.
Provisional rate of Rs. 2.50 per mille shall be charged in such cases for covering the risks under
Standard Fire and Special Perils Policy. No discounts and/or agency commission shall be allowed on
this rate.For add-on covers, additional rates provided in section VIII shall be charged
Rates shown under this tariff are minimum rates. Insurers may charge rates higher than those given
under the tariff.
2. VALUED POLICY(IES)
Valued Policy(ies) can be issued only for properties whose Market Value cannot be
ascertained e.g Curios, Works of Art, Manuscripts, Obsolete machinery and the like subject to the
valuation certificate being submitted and found acceptable by the insurers.
Tariff Advisory Committee Sheet No: 2
Mumbai 31-03-2001
Section I
General Rules and Regulations
3. LONG TERM POLICIES
Policies for a period exceeding 12 months shall not be issued except for "Dwellings".
4. MID-TERM COVER
Generally, it is not permissible to grant mid-term cover for STFI and/or RSMTD perils. The
following provisions shall apply, where such covers are granted mid-term:
a) Insurers must receive specific advice from the insured accompanied by payment of the required
additional premium in cash or by draft. This additional premium shall not be adjusted against existing
Cash deposits or debited to Bank guarantee.
b) Mid-term cover shall be granted for the entire property at one complex /compound/location
covering the entire interest of the Insured under one or more policy(ies). Insured shall not have any
option for selection.
c) Cover shall commence 15 days after the receipt of the premium.
d) The premium rates as under shall be charged on short period scale (as per Rule 8) on full sum
insured at one complex/compound/location covering the entire interest of the insured for the balance
period i.e. upto the expiry of the policy.
MID-TERM
INCLUSION
OF
SECTION III
SECTION VI SECTION IV,
V AND VII
MATERIALS IN
GODOWN
MATERIALS IN
OPEN
STFI 0.20%0 0.35%0 2.00%0 0.35%0
RSMTD 0.15%0 0.15%0 0.15%0 0.15%0
Tariff Advisory Committee Sheet No: 3
Mumbai 31-03-2001
Section I
General Rules and Regulations
5. PAYMENT OF PREMIUM
Premium shall be paid in full and shall not be accepted in instalments or by deferred
payments in any form.
N.B:- It is not permissible to split sum insured of the same property under various
policies for different periods of insurance to derive advantage of deferred instalments
for payment of premium. Notwithstanding the above, different policies may be
issued for stocks where circumstances necessitate issuance of such policies.
6. MINIMUM PREMIUM
Minimum premium shall be Rs.100/- per policy except for risks ratable under
Section III and „Tiny Sector Industries‟ under Section IV where the minimum
premium shall be Rs. 50/ per policy.
7. PARTIAL INSURANCE
It is not permissible
a) to issue a policy covering only certain portions of a building. Notwithstanding this, the plinth and
foundations or only the foundation of a building may be excluded.
b) to issue a policy covering only specified machinery (except Boilers), parts of machine or
accessories thereof housed in the same block/ building.
N.B. Where portions of a building and/or machinery therein are under different ownership, it is
permissible for each owner to insure separately but to the full extent of his interest on the building
and/or machinery therein. In such cases, the Insured's interest shall be clearly defined in the policy.
8. RATES FOR SHORT PERIOD INSURANCE
Policies for a period of less than 12 months shall be issued at the rates set out
hereunder:
Tariff Advisory Committee Sheet No: 4
Mumbai 31-03-2001
Section I
General Rules and Regulations
For a period not exceeding 15 days 10% of the Annual rate
-do- 1 month 15% of the Annual rate
-do- 2 months 30% of the Annual rate
-do- 3 months 40% of the Annual rate
-do- 4 months 50% of the Annual rate
-do- 5 months 60% of the Annual rate
-do- 6 months 70% of the Annual rate
-do- 7 months 75% of the Annual rate
-do- 8 months 80% of the Annual rate
-do- 9 months 85% of the Annual rate
For a period exceeding 9 months The full Annual rate
N.B.: Extension of short period policy(ies) shall not be permitted..
9. LOADING FOR "KUTCHA" CONSTRUCTION
Building(s) having walls and/or roofs of wooden planks/thatched leaves and/or grass/hay of any
kind/bamboo/plastic cloth/asphalt cloth/canvas/tarpaulin and the like shall be treated as 'Kutcha'
construction for rating. An additional rate of Rs.4.00%o shall be charged for such building(s) and/ or contents thereof.
Note:-Temporary sheds (attached to buildings) erected during the monsoon solely for
the purpose of monsoon protection are permitted without loading provided such sheds
are not used for storage purpose.
10. RULES FOR CANCELLATIONS
10.1
10.1.1.
For Cancellation of insurance policy.
. At the option of the insured:-
1 Retention of premium shall be at Short Period Scale for the period the policy
has been in force, subject to the retention of minimum premium by the Insurer.
Tariff Advisory Committee Sheet No: 5
Mumbai 31-03-2001
Section I
General Rules and Regulations
10.1.2
10.1.3
10.1.4
During the currency, if a policy is replaced with the same insurer by a new annual one
covering the identical property, refund of premium may be allowed on pro-rata basis at
the original rates for the sum insured replaced.
For the sum insured not replaced, refund must be calculated after charging premium at
short period scale on such sum for the time the insurance has been in force subject to
retention of the minimum premium by the insurer.
In case of short period policies, premium shall be retained at the applicable short period
scale. N.B.:- In case a policy is cancelled on account of a Government Order or on
completion of a “Building in course of construction” or where Buildings are
demolished, pro-rata refund of premium may be allowed.
10.2 At the option of the insurer:-
Refund of premium shall be on pro-rata basis for the unexpired term.
11. MID-TERM REVISION IN SUM INSURED :
Mid-term revision in sum insured shall be allowed as follows:
Increase in sum insured : On pro-rata basis
Decrease in sum insured : On short-period scale
12. ESCALATION CLAUSE :
It will be in order for Insurers to allow automatic regular increase in the Sum Insured throughout the
period of the policy in return for an additional premium to be paid in advance. The terms and
conditions for this extension shall be as follows
a) The selected percentage increase shall not exceed 25% of the Sum Insured.
b) The additional premium, payable in advance, will be at 50% of the full rate, to be charged
on the selected percentage increase.
Tariff Advisory Committee Sheet No: 6
Mumbai 31-03-2001
Section I
General Rules and Regulations
c) The Sum Insured at any point of time would be assessed after application of the Escalation
Clause.
d) Escalation Clause will apply to policies covering Building, Machinery and Accessories only
and will not apply to policies covering stock.
e) Escalation Clause will apply to all policies and is not restricted to policies issued on
reinstatement value basis.
f) Pro-rata condition of Average will continue to apply as usual.
g) The automatic increase operates from the date of inception upto the date of operation of any
of the Insured Perils.
Note:- For endorsement wording , see, Clause F, Annexure A.
13. FLOATER POLICY
Floater Policy (ies) can be issued for stocks at various locations under one Sum Insured (The Standard
Floater Clause I, Annexure A shall be attached to such policies).
Note: Unspecified locations shall not be allowed.
Rating: The rate shall be the highest rate applicable to insured's stocks at any location with a loading of 10 %.
N.B.1: In case Stocks in a process block are covered under the Floater Policy and the rate for the process
block is higher than the storage rate, the process rate plus 10% loading shall apply.
N.B.2: Presence of " Kutcha" construction may be ignored.
N.B.3: If stocks situated within godowns/process blocks in the same compound are overed under
floater policy, no floater extra is chargeable.
14.
DECLARATION POLICIES
To take care of frequent fluctuations in stocks/stock values, Declaration Policy(ies) can
Tariff Advisory Committee Sheet No: 7
Mumbai 31-03-2001
Section I
General Rules and Regulations
be granted subject to the following conditions (Standard Declaration Clause J,
Annexure A shall be attached to such policies):
a) The minimum sum insured shall be Rs 1 crore in one or more locations and the sum insured shall not
be less than Rs. 25 lakhs in atleast one of these locations.It is necessary that the declared values should
approximate to this figure at sometime during the policy year.
b) Monthly declarations based on a) the average of the values at risk on each day of the month or b) the
highest value at risk during the month shall be submitted by the Insured latest by the last day of the
succeeding month. If declarations are not received within the specified period, the full sum insured under
the policy shall be deemed to have been declared.
c) Reduction in sum insured shall not be allowed under any circumstances.
d) Refund of premium on adjustment based on the declarations/ cancellations shall not exceed 50% of
the total premium.
e) The basis of value for declaration shall be the Market Value anterior to the loss.
f) It is not permissible to issue declaration policy in respect of
i. Insurance required for a short period.
ii. Stocks undergoing process.
iii. Stocks at Railway sidings
g) If after occurrence of any loss it is found that the amount of last declaration previous to the loss is less
than the amount that ought to have been declared, then the amount which would have been recoverable
by the insured shall be reduced in such proportion as the amount of said last declaration bears to the
amount that ought to have been declared.
15.
FLOATER DECLARATION POLICIES
Floater Declaration policy(ies) can be issued subject to a minimum sum insured of Rs 2 crores and
compliance with the Rules for Floater and Declaration Policies respectively except that the minimum
retention shall be 80% of the annual premium. (Standard Floater Clause I and Declaration Clause J ,
Annexure A shall be attached to such policies):
16. CLAIMS EXPERIENCE DISCOUNT / LOADING
Tariff Advisory Committee Sheet No: 8
Mumbai 31-03-2001
Section I
General Rules and Regulations
Risks having sum insured (on buildings and contents of all blocks in one compound of one complex in
one location ) above Rs.50 Crores rateable under Sections IV, V, VI & VII of this tariff shall attract
claims experience discounts/loadings based on the incurred claims experience of all the policies covering
the Insured‟s interest for the preceding 36 months excluding the expiring policy period. (If there is any
break in insurance, available 36 months experience shall be taken into account) as per the table given
below.
Incurred claim ratio for the preceding 36
months excluding the expiring policy period
Discount
( % )
Loading
(%)
*
Upto 5 % 15 --
Above 5% & upto 10% 10 --
Above 10% & upto 15% 5 --
Above 15% & upto 30% -- --
Above 30% & upto 40% -- 2.5
Above 40% & upto 55% -- 5
Above 55% & up to 75% -- 10
Above 75% & up to 100% -- 15
Above 100% -- To be referred to TAC
* On renewal of business either by an existing insurer or by a new insurer, a provisional loading of
15% must be charged in all cases where certified details of claims experience by respective insurers
are not available. This loading shall be adjusted subsequently on receipt of the exact claims
experience.
17. FIRE EXTINGUISHING APPLIANCES DISCOUNT
The discounts as per the scale given below may be granted by the Insurers to
detached or segregated (as per the Committees Building Regulations) blocks of the
risks protected by Fire Extinguishing Appliances ratable under Sections III, IV, V,
VI and VII of the Tariff [except for Floater and/or Floater Declaration Policy(ies)]
subject to the following:
a) System is erected and tested as per the relevant Regulations of the TAC and a
certificate from LPA or TAC accredited Professional(s) /Professional
Tariff Advisory Committee Sheet No: 9
Mumbai 31-03-2001
Section I
General Rules and Regulations
agency(ies) confirming the efficacy of the system and its full compliance with
the Committee‟s rules is submitted by the Insured.
Note: Professional(s) / Professional Agency (ies) designing and/or installing the system themselves
shall get the system certified by third parties.
b) The installation is maintained in an efficient working order at all times and an Annual
Maintenance Contract (AMC) with an external agency is in force.
Note:- Any agency other than the one involved in the installation of the system or a
third party having uptodate knowledge of maintenance of fire fighting equipment can
be approached for AMC.
Type of installation Discount (%)
a) Hand Appliances & Trailer Pumps/ Fire Engines 2.5
b) Hand Appliances & Hydrant System 5
c) Hand Appliances & independent Sprinkler / Fixed Water Spray System 7.5
d) Hand Appliances + Hydrant System & independent Sprinkler/ Fixed Water Spray
System
10
N.B.:1 Absence of Hand Appliances for Storage risks will not prejudice the applicable discounts
N.B.:2 The discounts are not cumulative
18. RATING OF RISKS IN MULTIPLE OCCUPANCY INDUSTRIAL ESTATE
Risks in Multiple Occupancy Industrial Estate shall be rated `Per se'. If the entire building of the
Industrial Estate is insured under one sum insured, a rate of Rs. 1.80%o shall be chargeable to
'building'.
19. SILENT RISK
Risks rateable under Sections IV and V are allowed silent rates as per the
following table.
Tariff Advisory Committee Sheet No: 10
Mumbai 31-03-2001
Section I
General Rules and Regulations
Factories where no manufacturing / storage
activities are carried out continuously for
30 days or more.
Retention of the premium shall be based on the
appropriate storage rate or silent risk rate of Re.1.00%o
whichever is higher.
20.
The silent rates are not applicable if a risk goes silent following a loss under
the policy.
Note:- Risks becoming silent shall not be entitled to any discounts.
Voluntary Deductibles
On receipt of application from the insured, Insurer may consider suitable discounts for voluntary
deductibles as per the scale shown in the table below. The discounts are applicable under the
Standard Fire and Special Perils Policy as well as for the add-on covers.
Note: The Insurer shall attach to the policy(ies) a suitable clause in case the insured
opts for the deductible and discount in the premium as shown in the table.
For endorsement wording see Clause K, Annexure A.
Note: The Insurer shall attach to the policy(ies) a suitable clause in case the insured
opts for the deductible and discount in the premium as shown in the table.
For endorsement wording see Clause K, Annexure A.
Tariff Advisory Committee Sheet No: 11
Mumbai 31-03-2001
Section I
General Rules and Regulations
Table of discounts for Voluntary Deductible
Deductible Amount
Discount (%)
AOG Perils 5% of Claim amount subject to
minimum of Rs.
Other perils In Rs. lakhs
10 lakhs 5 2
20 lakhs 10 4
30 lakhs 15 6
60 lakhs 30 8
100 lakhs 50 10
> 100 lakhs > 50 To be referred to TAC
21. COMPUTATION OF RATE
The following sequence shall be adopted for computation of the rate :-
1. Basic Rate
2. 5% Reduction for Sprinklered blocks if applicable ( for risks rateable
under Sections III ,IV, V and VI).
3. Reduction in rates for deletion of STFI and/or RSMTD perils, if opted
out.
4. Tariff extra for `Kutcha' Construction, if applicable ( to be applied on
1-2-3)
5. Discount/loading for claims experience (to be applied on 1-2-3-/+4)
6. Discount for FEA on protected blocks (to be applied on 1-2-3-/+4 )
7. Discount for voluntary deductible shall be applicable on the total
premium calculated on the basis of final rate worked out as above .
Tariff Advisory Committee Sheet No: 12
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY
IN CONSIDERATION OF the Insured named in the Schedule hereto having paid to the
.............................. Insurance Company Limited (hereinafter called the Company) the full
premium mentioned in the said schedule, THE COMPANY AGREES, (Subject to the
Conditions and Exclusions contained herein or endorsed or otherwise expressed hereon)
that if after payment of the premium the Property insured described in the said Schedule
or any part of such Property be destroyed or damaged by any of the perils specified
hereunder during the period of insurance named in the said schedule or of any
subsequent period in respect of which the Insured shall have paid and the Company shall
have accepted the premium required for the renewal of the policy, the Company shall
pay to the Insured the value of the Property at the time of the happening of its destruction
or the amount of such damage or at its option reinstate or replace such property or any
part thereof
I Fire
Excluding destruction or damage caused to the property insured by
a) i) its own fermentation ,natural heating or spontaneous combustion.
ii) its undergoing any heating or drying process.
b) burning of property insured by order of any Public Authority.
II Lightning
III Explosion/Implosion
Excluding loss, destruction of or damage
a) to boilers (other than domestic boilers), economizers or other vessels, machinery or
apparatus( in which steam is generated) or their contents resulting from their own
explosion/implosion,
b) caused by centrifugal forces.
Tariff Advisory Committee Sheet No: 13
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY
IV Aircraft Damage
Loss, Destruction or damage caused by Aircraft, other aerial or space devices and articles dropped
therefrom excluding those caused by pressure waves.
Riot, Strike, Malicious and Terrorism Damage
Loss of or visible physical damage or destruction by external violent means directly caused to
the property insured but excluding those caused by
a) total or partial cessation of work or the retardation or interruption or cessation of any process or
operations or omissions of any kind.
b) Permanent or temporary dispossession resulting from confiscation, commandeering, requisition
or destruction by order of the Government or any lawfully constituted Authority.
c) Permanent or temporary dispossession of any building or plant or unit or machinery resulting
from the unlawful occupation by any person of such building or plant or unit or machinery or
prevention of access to the same.
d) Burglary, housebreaking, theft, larceny or any such attempt or any omission of any kind of any
person (whether or not such act is committed in the course of a disturbance of public peace) in
any malicious act.
Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation
Loss, destruction or damage directly caused by Storm, Cyclone, Typhoon, Tempest,
Hurricane, Tornado, Flood or Inundation excluding those resulting from earthquake,
Volcanic eruption or other convulsions of nature. ( Wherever earthquake cover is given
as an “add on cover” the words “excluding those resulting from earthquake volcanic
eruption or other convulsions of nature” shall stand deleted.
Impact Damage
Loss of or visible physical damage or destruction caused to the property insured due to impact by
any Rail/ Road vehicle or animal by direct contact not belonging to or owned by
a) b) the Insured or any occupier of the premises or
c) their employees while acting in the course of their employment.
Tariff Advisory Committee Sheet No: 14
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY
Subsidence and Landslide including Rock slide
Loss, destruction or damage directly caused by Subsidence of part of the site on which
the property stands or Land slide/Rock slide excluding:
a) b) the normal cracking, settlement or bedding down of new structures
c) the settlement or movement of made up ground
d) coastal or river erosion
e) defective design or workmanship or use of defective materials
f) demolition, construction, structural alterations or repair of any property or groundworks or
excavations.
Bursting and/or overflowing of Water Tanks, Apparatus and Pipes
Missile Testing operations
Leakage from Automatic Sprinkler Installations Excluding loss, destruction or damage caused by
a) b) Repairs or alterations to the buildings or premises
c) Repairs, Removal or Extension of the Sprinkler Installation
d) Defects in construction known to the Insured.
Bush Fire
Excluding loss, destruction or damage caused by Forest Fire.
PROVIDED that the liability of the Company shall in no case exceed in respect of each item the sum
expressed in the said Schedule to be insured thereon or in the whole the total Sum Insured hereby or such
other sum or sums as may be substituted therefor by memorandum hereon or attached hereto signed by or
on behalf of the Company.
(A) GENERAL EXCLUSIONS
This Policy does not cover (not applicable to policies covering dwellings)
a) b) The first 5% of each and every claim subject to a minimum of Rs.10,000 in
respect of each and every loss arising out of “Act of God perils” such as
Tariff Advisory Committee Sheet No: 15
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY
Lightning,STFI, Subsidence,Landslide and Rock slide covered under the policy
c) The first Rs.10,000 for each and every loss arising out of other perils in respect
of which the Insured is indemnified by this policy
The Excess shall apply per event per insured.
Loss, destruction or damage caused by war, invasion, act of foreign enemy hostilities or
war like operations (whether war be declared or not), civil war, mutiny, civil commotion
assuming the proportions of or amounting to a popular rising, military rising, rebellion,
revolution, insurrection or military or usurped power.
Loss, destruction or damage directly or indirectly caused to the property insured by
a) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste
from the combustion of nuclear fuel
b) the radio active toxic, explosives or other hazardous properties of any explosive nuclear assembly or
nuclear component thereof
Loss, destruction or damage caused to the insured property by pollution or contamination excluding
a) b) pollution or contamination which itself results from a peril hereby insured against.
c) any peril hereby insured against which itself results from pollution or contamination
Loss, destruction or damage to bullion or unset precious stones, any curios or works of art for an amount
exceeding Rs. 10000/-, manuscripts, plans, drawings, securities, obligations or documents of any kind,
stamps, coins or paper money, cheques, books of accounts or other business books, computer systems
records, explosives unless otherwise expressly stated in the policy.
Loss, destruction or damage to the stocks in Cold Storage premises caused by change of temperature.
Loss, destruction or damage to any electrical machine, apparatus, fixture, or fitting
arising from or occasioned by over-running, excessive pressure, short circuiting, arcing,
self heating or leakage of electricity from whatever cause (lightning included) provided
that this exclusion shall apply only to the particular electrical machine, apparatus, fixture
or fitting so affected and not to other machines, apparatus, fixtures or fittings which may
be destroyed or damaged by fire so set up.
Tariff Advisory Committee Sheet No: 16
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY
Expenses necessarily incurred on (i) Architects, Surveyors and Consulting Engineer's
Fees and (ii) Debris Removal by the Insured following a loss, destruction or damage to
the Property insured by an insured peril in excess of 3% and 1% of the claim amount
respectively.
Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any
kind or description whatsoever.
Loss, or damage by spoilage resulting from the retardation or interruption or cessation of
any process or operation caused by operation of any of the perils covered.
Loss by theft during or after the occurrence of any insured peril except as provided under Riot, Strike,
Malicious and Terrorism Damage cover.
Any Loss or damage occasioned by or through or in consequence directly or indirectly
due to earthquake, Volcanic eruption or other convulsions of nature.
Loss or damage to property insured if removed to any building or place other than in which it is herein
stated to be insured, except machinery and equipment temporarily removed for repairs, cleaning,
renovation or other similar purposes for a period not exceeding 60 days.
(B) (C) GENERAL CONDITIONS
1.THIS POLICY shall be voidable in the event of mis-representation, mis-description or non-disclosure of
any material particular.
2.All insurances under this policy shall cease on expiry of seven days from the date of fall or displacement
of any building or part thereof or of the whole or any part of any range of buildings or of any structure of
which such building forms part.
PROVIDED such a fall or displacement is not caused by insured perils, loss or damage which is covered
by this policy or would be covered if such building, range of buildings or structure were insured under this
policy.
Notwithstanding the above, the Company subject to an express notice being given as soon as possible but
not later than seven days of any such fall or displacement may agree to continue the insurance subject to
revised rates, terms and conditions as may be decided by it and confirmed in writing to this effect.
Tariff Advisory Committee Sheet No: 17
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY
3.Under any of the following circumstances the insurance ceases to attach as regards the property affected
unless the Insured, before the occurrence of any loss or damage, obtains the sanction of the Company
signified by endorsement upon the policy by or on behalf of the Company :-
a) If the trade or manufacture carried on be altered, or if the nature of the occupation of or other
circumstances affecting the building insured or containing the insured property be changed in such a
way as to increase the risk of loss or damage by Insured Perils.
b) c) If the building insured or containing the insured property becomes unoccupied and so remains for a
period of more than 30 days.
d) If the interest in the property passes from the insured otherwise than by will or operation of law.
4.This insurance does not cover any loss or damage to property which, at the time of the happening of such
loss or damage, is insured by or would, but for the existence of this policy, be insured by any marine
policy or policies except in respect of any excess beyond the amount which would have been payable
under the marine policy or policies had this insurance not been effected.
5.This insurance may be terminated at any time at the request of the Insured, in which case the Company
will retain the premium at customary short period rate for the time the policy has been in force. This
insurance may also at any time be terminated at the option of the Company, on 15 days' notice to that
effect being given to the Insured, in which case the Company shall be liable to repay on demand a rateable
proportion of the premium for the unexpired term from the date of the cancellation.
6.(i) On the happening of any loss or damage the Insured shall forthwith give notice thereof to the
Company and shall within 15 days after the loss or damage, or such further time as the Company may
in writing allow in that behalf, deliver to the Company
a) A claim in writing for the loss or damage containing as particular an account as may be reasonably
practicable of all the several articles or items or property damaged or destroyed, and of the amount of
the loss or damage thereto respectively, having regard to their value at the time of the loss or damage
not including profit of any kind.
b) Particulars of all other insurances, if any
The Insured shall also at all times at his own expense produce, procure and give to the Company all such
further particulars, plans, specification books, vouchers, invoices, duplicates or copies thereof, documents,
investigation reports (internal/external), proofs and information with respect to the claim and the origin and
cause of the loss and the circumstances under which the loss or damage occurred, and any matter touching
Tariff Advisory Committee Sheet No: 18
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY the liability or the amount of the liability of the Company as may be reasonably required by or on behalf of
the Company together with a declaration on oath or in other legal form of the truth of the claim and of any
matters connected therewith.
No claim under this policy shall be payable unless the terms of this condition have been
complied with
(ii) In no case whatsoever shall the Company be liable for any loss or damage after the expiry of 12
months from the happening of the loss or damage unless the claim is the subject of pending action or
arbitration; it being expressly agreed and declared that if the Company shall disclaim liability for any
claim hereunder and such claim shall not within 12 calendar months from the date of the disclaimer
have been made the subject matter of a suit in a court of law then the claim shall for all purposes be
deemed to have been abandoned and shall not thereafter be recoverable hereunder.
7. On the happening of loss or damage to any of the property insured by this policy, the Company may
a) b) enter and take and keep possession of the building or premises where the loss or damage has
happened.
c) take possession of or require to be delivered to it any property of the Insured in the building or
on the premises at the time of the loss or damage.
d) keep possession of any such property and examine, sort, arrange, remove or otherwise deal with
the same.
e) sell any such property or dispose of the same for account of whom it may Concern.
The powers conferred by this condition shall be exercisable by the Company at any time until notice in
writing is given by the insured that he makes no claim under the policy, or if any claim is made, until such
claim is finally determined or withdrawn, and the Company shall not by any act done in the exercise or
purported exercise of its powers hereunder, incur any liability to the Insured or diminish its rights to rely
upon any of the conditions of this policy in answer to any claim.
If the insured or any person on his behalf shall not comply with the requirements of the Company or shall
hinder or obstruct the Company, in the exercise of its powers hereunder, all benefits under this policy shall
be forfeited.
The Insured shall not in any case be entitled to abandon any property to the Company whether taken
possession of by the Company or not.
8. If the claim be in any respect fraudulent, or if any false declaration be made or used in support thereof
or if any fraudulent means or devices are used by the Insured or any one acting on his behalf to obtain any
benefit under the policy or if the loss or damage be occasioned by the willful act, or with the connivance of
Tariff Advisory Committee Sheet No: 19
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY the Insured, all benefits under this policy shall be forfeited.
9. If the Company at its option, reinstate or replace the property damaged or destroyed, or any part thereof,
instead of paying the amount of the loss or damage, or join with any other Company or Insurer(s) in so
doing, the Company shall not be bound to reinstate exactly or completely but only as circumstances permit
and in reasonably sufficient manner, and in no case shall the Company be bound to expend more in
reinstatement than it would have cost to reinstate such property as it was at the time of the occurrence of
such loss or damage nor more than the sum insured by the Company thereon. If the Company so elect to
reinstate or replace any property the insured shall at his own expense furnish the Company with such
plans, specifications, measurements, quantities and such other particulars as the Company may require, and
no acts done, or caused to be done, by the Company with a view to reinstatement or replacement shall be
deemed an election by the Company to reinstate or replace.
If in any case the Company shall be unable to reinstate or repair the property hereby insured, because of
any municipal or other regulations in force affecting the alignment of streets or the construction of
buildings or otherwise, the Company shall, in every such case, only be liable to pay such sum as would be
requisite to reinstate or repair such property if the same could lawfully be reinstated to its former
condition.
10. If the property hereby insured shall at the breaking out of any fire or at the commencement of any
destruction of or damage to the property by any other peril hereby insured against be collectively of greater
value than the sum insured thereon, then the Insured shall be considered as being his own insurer for the
difference and shall bear a rateable proportion of the loss accordingly. Every item, if more than one, of the
policy shall be separately subject to this condition.
11.If at the time of any loss or damage happening to any property hereby insured there be any other
subsisting insurance or insurances, whether effected by the Insured or by any other person or persons
covering the same property, this Company shall not be liable to pay or contribute more than its rateable
proportion of such loss or damage.
12.The Insured shall at the expense of the Company do and concur in doing, and permit to be done, all
such acts and things as may be necessary or reasonably required by the Company for the purpose of
enforcing any rights and remedies or of obtaining relief or indemnity from other parties to which the
Company shall be or would become entitled or subrogated, upon its paying for or making good any loss or
damage under this policy, whether such acts and things shall be or become necessary or required before or
after his indemnification by the Company.
13.If any dispute or difference shall arise as to the quantum to be paid under this policy (liability being
Tariff Advisory Committee Sheet No: 20
Mumbai 31-03-2001
Section II
STANDARD FIRE AND SPECIAL PERILS POLICY otherwise admitted) such difference shall independently of all other questions be referred to the decision of
a sole arbitrator to be appointed in writing by the parties to or if they cannot agree upon a single arbitrator
within 30 days of any party invoking arbitration, the same shall be referred to a panel of three arbitrators,
comprising of two arbitrators, one to be appointed by each of the parties to the dispute/difference and the
third arbitrator to be appointed by such two arbitrators and arbitration shall be conducted under and in
accordance with the provisions of the Arbitration and Conciliation Act, 1996.
It is clearly agreed and understood that no difference or dispute shall be referable to arbitration as
hereinbefore provided, if the Company has disputed or not accepted liability under or in respect of this
policy.
It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or
suit upon this policy that the award by such arbitrator/ arbitrators of the amount of the loss or damage shall
be first obtained.
14. Every notice and other communication to the Company required by these conditions must be written or
printed.
15. At all times during the period of insurance of this policy the insurance cover will be maintained to the
full extent of the respective sum insured in consideration of which upon the settlement of any loss under
this policy, pro-rata premium for the unexpired period from the date of such loss to the expiry of period of
insurance for the amount of such loss shall be payable by the insured to the Company.
The additional premium referred above shall be deducted from the net claim amount payable under the
policy. This continuous cover to the full extent will be available notwithstanding any previous loss for
which the company may have paid hereunder and irrespective of the fact whether the additional premium
as mentioned above has been actually paid or not following such loss. The intention of this condition is to
ensure continuity of the cover to the insured subject only to the right of the company for deduction from
the claim amount, when settled, of pro-rata premium to be calculated from the date of loss till expiry of the
policy.
Notwithstanding what is stated above, the Sum Insured shall stand reduced by the amount of loss in case
the insured immediately on occurrence of the loss exercises his option not to reinstate the sum insured as
above.
Tariff Advisory Committee Sheet No: 21
Mumbai 31-03-2001
Section III
DWELLINGS, OFFICES, HOTELS, SHOPS ETC.
RULES
1 The 'Buildings' and 'Contents' of risks rateable under this Section shall be rated 'per se'.
2 Stocks belonging to the insured stored in the open area adjacent to the insured's premises are held
covered.
3 Incidental operations such as grinding of lenses in optical frame shops, polishing and/or varnishing in
furniture shops, occasional repairs etc. are permitted.
4 For seasonal storage of crackers during the currency of the policy in ' Shops dealing in goods otherwise
not provided', a loading of 10% shall be charged on the rates applicable to 'contents'.
5 The presence of hazardous goods (as per list attached) not exceeding 5% of the total value of the stock
may be ignored.
6 The reduction in premium rates for deletion of STFI and /or RSMTD perils at the inception of the
policy shall be as under:
STFI Re.0.15%o
RSMTD Re.0.10%o
Tariff Advisory Committee Sheet No: 22
Mumbai 31-03-2001
Section III
DWELLINGS, OFFICES, HOTELS, SHOPS ETC.
7
Long Term Policy For Dwellings:-
Long Term Policies shall be issued based on either of the following 2 methods subject to the
conditions below to house/flat owners only:
a) The policy shall be issued for a minimum period of 3 years.
b) No refund shall be allowed for mid-term cancellation of such policies.
c) Mid-term inclusion of perils shall not be allowed.
d) Premium for entire policy period shall be collected in advance.
Method A:
Premium shall be charged in full without any discount. However sum insured
under the policy shall be deemed to have increased by 10% of the origional
sum insured at the end of every 12 months period.
OR
Method B:
There shall not be any automatic increase in sum insured as in method A.
However appropriate discounts shall be allowable on applicable gross
premium as per table below:
Duration of Policy
Premium to be Charged
3 years policy 3 years premium in advance less 15% discount
4 years policy 4 years premium in advance less 20% discount
5 years policy 5 years premium in advance less 25% discount
6 years policy 6 years premium in advance less 30% discount
7 years policy 7 years premium in advance less 35% discount
8 years policy 8 years premium in advance less 40% discount
Tariff Advisory Committee Sheet No: 23
Mumbai 31-03-2001
Section III
DWELLINGS, OFFICES, HOTELS, SHOPS ETC.
9 years policy 9 years premium in advance less 45% discount
Policy for 10 years
and above
Entire premium in advance less 50% discount.
N.B. Mid-term increase in sum insured shall be allowed on pro rata basis for the balance period.
Rating schedule
Risk code Rate code Description Building
rate
Per mille
Contents
rate
Per mille
1 01
Dwellings, Places of worships, Libraries, Museums,
Schools, Colleges, Hospitals including X-ray and other
In cases where more than one product is manufactured in the same block, the highest rate applicable shall be charged overall
If two or more factories are situated in the same compound or independent products are manufactured in the same compound the manufacturing blocks shall be rateable `per se‟ if located detached.. Auxiliaries/miscellaneous blocks/utilities and godowns / tankfarms, pipelines, roads,,compound wall etc. in such cases shall carry highest rate of all such manufacturing blocks.
1
Rules:
Operations incidental to the main process shall be rated at par with the main process if such operations are
carried out inside the main process blocks.
2 Dwelling houses located inside the factory compound may be rated ” per se”
3 In case of any clarification, insurers may refer the matter to the Committee after charging a provisional rate
as per General Rule 1 (f), Section I.
Note 1: Detached/Segregated block(s) within a risk which are protected by automatic sprinkler
installation with its own independent pumping arrangements, etc. as per the Committee‟s rules for
sprinkler installation shall be allowed 5% reduction on the basic rate(s).
Note 2. The reduction in premium rates for deletion of STFI and /or RSMTD perils at the inception of
the policy shall be as under:
STFI Re.0.25%o
RSMTD Re.0.10%o
Tariff Advisory Committee Sheet No: 27
Mumbai 31-03-2001
Section IV
INDUSTRIAL/MANUFACTURING RISKS
Risk
code
Rate
code
Description of risk
Rate
(Rs.
per mille)
001 07
Abrasive Manufacturing
2.00
002 05
Aerated Water Factories
1.50
003 05
Aerial Ropeway including trolley stations
1.50
004 07
Agarbatti manufacturing
2.00
005 11
Aircraft Hangers
3.00
006 05 Airport Terminal Buildings (including all facilities like
Cafes, Shops etc)
N.B: Airport Cargo complex shall be rated under Section
VI
1.50
007 18 Aluminium/ Magnesium Powder Plants 5.50
008 05 Aluminium ,Zinc,Copper Factories 1.50
009 07 Arecanut and/or Betelnut factories 2.00
010 05 Asbestos Steam Packing and lagging manufacturing 1.50
011 07 Atta and Cereal Grinding (excluding Dal Mills) 2.00
012 12 Audio/Video Cassette Manufacturing 3.50
013 05 Automobile Manufacturing 1.50
014 05
Bakeries
1.50
Tariff Advisory Committee Sheet No: 28
Mumbai 31-03-2001
Section IV
INDUSTRIAL/MANUFACTURING RISKS
Risk
code
Rate
code
Description of risk
Rate
(Rs.
per mille)
015 15
Basket Weavers and Cane Furniture Makers
4.50
016 08
Battery Manufacturing
2.25
017 11
Beedi Factories
3.00
018 05
Biscuit Factories
1.50
019 14 Bitumenised Paper and / or Hessian Cloth Manufacturing
including Tar Felt Manufacturing. 4.00
020 09
Book Binders, Envelope and Paper Bag Manufacturing.
2.50
021 07
Breweries
2.00
022 03
Brickworks (including refractories and fire bricks)